Gome issued a profit warning or a quarter net profit down 50%

Sina

April 27th afternoon message, Gome (00493.HK) issued a profit warning announcement, said the group entered the implementation period based on strategic transformation, during the three months ended March 31, 2016 profit forecast will be reduced; compared to the same period last year, reduce the rate of about 50% to 55%. Excluding non operating factors, adjusted profit will be reduced by about 30% to between and the same period last year.

announced that the group according to the 2015 proposed "all channels, new scenes, strong links" strategic planning in 2016 began to enter the implementation phase transition, according to a preliminary review of the most recent management accounts, the overall negative growth was recorded in 3% to 3.5% than the store sales revenue is expected for the electronic commerce; the sustained rapid growth and transformation of the primary market stores, the overall gross profit margin has been low, but the group’s overall gross margin is expected to remain at a level of about 17%.

also said the announcement, the total group of online and offline transactions ("GMV") compared with the same period last year is expected to increase more than 12%, including online e-commerce GMV growth is expected to exceed 100%; expected during the reporting period the sales revenue growth of more than 5% over the same period last year, in which part of the self line e-commerce sales forecast growth of more than 90%; during the reporting period, the group’s cost rate was essentially flat compared with the same period last year, excluding non operating factors such as during the reporting period, the expense ratio is expected to decline. Strategic transformation is expected to be completed to enhance the performance of the group. (Li Nan)